MAGA is going all out to enforce sanctions on Iran. At least this should make top funder Adelson proud and convinve him to open his wallet again for MAGA 2020.
Meng Wanzhou is one of the vice chairs on the Chinese technology company's board and the daughter of company founder Ren Zhengfei.

Canada has arrested Huawei's global chief financial officer in Vancouver, where she is facing extradition to the United States on suspicion she violated U.S. sanctions against Iran, the Globe and Mail newspaper reported on Wednesday.
Representatives of Huawei, one of the world's largest makers of telecommunications network equipment, could not immediately be reached for comment by Reuters.
The U.S. Justice Department is investigating whether Huawei violated sanctions on Iran.This story is developing. Please check back for updates.

Canada has arrested Huawei's global chief financial officer in Vancouver, where she is facing extradition to the United States on suspicion she violated U.S. sanctions against Iran, the Globe and Mail newspaper reported on Wednesday.
Representatives of Huawei, one of the world's largest makers of telecommunications network equipment, could not immediately be reached for comment by Reuters.
The U.S. Justice Department is investigating whether Huawei violated sanctions on Iran.This story is developing. Please check back for updates.

Huawei said in a statement to The Globe that Ms. Meng faces “unspecified charges in the Eastern District of New York” and was arrested when she was transferring flights in Canada.

The Chinese embassy in Ottawa strongly protested the arrest of Ms. Meng, saying she had not violated Canadian or American law and demanded her immediate release.
“The Chinese side firmly opposes to and strongly protests over such kind of actions which seriously harmed the human rights of the victim,” the embassy said in a statement. “The Chinese side has lodged stern representations with the U.S. and Canadian side, urged them to immediately correct the wrongdoing and restore the personal liberty of Ms. Meng Wanzhou. We will closely follow the development of the issue and take all measures to resolutely protect the legitimate rights and interests of Chinese citizen.”
Chinese Ambassador Lu Shaye and four high-ranking members of the National People’s Congress also cancelled an appearance before the House of Commons foreign affairs committee scheduled for Thursday.

“I haven’t gotten an answer on why they cancelled, but the timing is certainly very curious,” Conservative foreign affairs critic Erin O’Toole said.
The decision by Canadian authorities to detain such a high profile Chinese citizen – and particularly one sought for extradition to the United States – is bound to hurt Canada-China relations.

Market sell-off set to continue as Dow futures get hit
Christine Wang
Published 58 Mins Ago
U.S. stock futures opened lower Wednesday amid lingering anxiety about a possible economic slowdown and continued murkiness around trade relations with China. On Wednesday evening, futures initially indicated that the Dow Jones Industrial Average would open 400 points lower. Dow futures fell as much as 486 points at their lows. Markets have since recovered and, as of 6:36 p.m., ET, indicated that the Dow would open more than 200 points lower on Thursday.

The arrest of Huawei's global chief financial officer in Canada, reportedly related to the violation of U.S. sanctions, will affect trade negotiations between Washington and Beijing, according to risk consultancy Eurasia Group.

Canada's Department of Justice said on Wednesday the country arrested Meng Wanzhou in Vancouver, where she is facing extradition to the U.S.

U.S. authorities have been probing Huawei, one of the world's largest makers of telecommunications network equipment, since at least 2016 for allegedly shipping U.S.-origin products to Iran and other countries in violation of U.S. export and sanctions laws, sources told Reuters in April.

As questions swirl over who knew what, when before, during and after the historic Trump-Xi dinner, we previously learned that National Security Advisor John Bolton revealed that he knew in advance that Canadian police were preparing to arrest Huawei CFO Wanzhou Meng, meaning that Bolton knew that Meng was being taken into custody when he sat down alongside President Trump for Saturday's dinner trade talks with Chinese President Xi Jinping.

The timing is important of course, because if the US knew in ahead of the dinner of an imminent "material adverse event" that could spoil the trade ceasefire, it would be seen as very politically embarrassing to Xi, and as Deutsche Bank explained earlier, would be considered a major escalation.

Huawei has been widely recognized as one of the most successful technology companies in China. This news pushed policy makers in Beijing into an awkward position. Public opinion in China will likely become more negative in respect to the trade war, and potentially against US companies. The government may find it difficult to tell the public that they have offered significant concessions to the US. The trade talk has just been resumed at the G20 meeting; now its outlook has darkened.

Now, according to Reuters, and rather inexplicably, even as Bolton knew about Meng's imminent arrest, President Donald Trump was reportedly unaware the U.S. had requested Meng’s extradition from Canada before he joined Chinese President Xi Jinping for dinner on Saturday, a White House official said.

As questions swirl over who knew what, when before, during and after the historic Trump-Xi dinner, we previously learned that National Security Advisor John Bolton revealed that he knew in advance that Canadian police were preparing to arrest Huawei CFO Wanzhou Meng, meaning that Bolton knew that Meng was being taken into custody when he sat down alongside President Trump for Saturday's dinner trade talks with Chinese President Xi Jinping.

The timing is important of course, because if the US knew in ahead of the dinner of an imminent "material adverse event" that could spoil the trade ceasefire, it would be seen as very politically embarrassing to Xi, and as Deutsche Bank explained earlier, would be considered a major escalation.

Huawei has been widely recognized as one of the most successful technology companies in China. This news pushed policy makers in Beijing into an awkward position. Public opinion in China will likely become more negative in respect to the trade war, and potentially against US companies. The government may find it difficult to tell the public that they have offered significant concessions to the US. The trade talk has just been resumed at the G20 meeting; now its outlook has darkened.

Now, according to Reuters, and rather inexplicably, even as Bolton knew about Meng's imminent arrest, President Donald Trump was reportedly unaware the U.S. had requested Meng’s extradition from Canada before he joined Chinese President Xi Jinping for dinner on Saturday, a White House official said.

"If you are not US citizen and you are not in the United States, we Washington the self proclaim dictators of the world, will still tell you what you can and cannot do and who you can and cannot trade with, and we will have our vassal minions kidnap you from other nations and rendition you here for violating our imperial world order decrees.

Last edited by AZJoe; 12-07-2018 at 07:48 PM.

"Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
"War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

Arrest of Huawei’s CFO signals trouble for US tech companies doing business with China

Arrest of Huawei’s Sabrina Meng Wanzhou signals trouble for US tech companies doing business with China

US federal prosecutors will ‘want to know whether [suppliers] knew or had reason to know these violations occurred’, an analyst said

Fears grow that tensions between the US and China will make a trade deal more difficult to achieve

PUBLISHED : Friday, 07 December, 2018

The arrest of Huawei Technologies’ finance chief Sabrina Meng Wanzhou has exposed new risks facing US technology companies doing business with China and stoked fears of a prolonged US-China trade war.
Meng, the daughter of founder Ren Zhengfei of Huawei, the second largest smartphone maker in the world after Samsung, was arrested on Saturday by police in Vancouver, Canada, at the request of the US government on suspicion of violating US sanctions against Iran.Watch: Huawei CFO Sabrina Meng Wanzhou arrested

The arrest of Meng, who is also known as Cathy Meng, is the latest move by the Trump administration to crack down on large Chinese technology companies after a ban on another Chinese telecommunications equipment maker, ZTE, earlier this year.
It also sends a strong message that US tech companies that have business with China might face more headwinds.

The family of Professor Zhang Shoucheng denied Chinese social media rumours that his death was due to US-China tensions or the arrest of Huawei’s CFO

The renowned physicist died Saturday after a long battle with depression

Zhang died on Saturday, December 1 following a battle with depression, according to his family. He was 55.
Many rumours circulated on Chinese social media about his sudden demise, some trying to build links between his death to a possible US government investigation under Section 301 of US trade law into Zhang’s Danhua capital and even stretching to connect it to the arrest of Huawei’s CFO Meng Wanzhou on the same day.

"Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
"War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

Arrest of Huawei’s Sabrina Meng Wanzhou signals trouble for US tech companies doing business with China

US federal prosecutors will ‘want to know whether [suppliers] knew or had reason to know these violations occurred’, an analyst said

Fears grow that tensions between the US and China will make a trade deal more difficult to achieve

PUBLISHED : Friday, 07 December, 2018

The arrest of Huawei Technologies’ finance chief Sabrina Meng Wanzhou has exposed new risks facing US technology companies doing business with China and stoked fears of a prolonged US-China trade war.
Meng, the daughter of founder Ren Zhengfei of Huawei, the second largest smartphone maker in the world after Samsung, was arrested on Saturday by police in Vancouver, Canada, at the request of the US government on suspicion of violating US sanctions against Iran.Watch: Huawei CFO Sabrina Meng Wanzhou arrested

The arrest of Meng, who is also known as Cathy Meng, is the latest move by the Trump administration to crack down on large Chinese technology companies after a ban on another Chinese telecommunications equipment maker, ZTE, earlier this year.
It also sends a strong message that US tech companies that have business with China might face more headwinds.

The family of Professor Zhang Shoucheng denied Chinese social media rumours that his death was due to US-China tensions or the arrest of Huawei’s CFO

The renowned physicist died Saturday after a long battle with depression

Zhang died on Saturday, December 1 following a battle with depression, according to his family. He was 55.
Many rumours circulated on Chinese social media about his sudden demise, some trying to build links between his death to a possible US government investigation under Section 301 of US trade law into Zhang’s Danhua capital and even stretching to connect it to the arrest of Huawei’s CFO Meng Wanzhou on the same day.

Executives in the tech industry are being warned about traveling to China as some experts speculate that the Chinese government could retaliate over the arrest of Huawei’s Meng. The 46-year-old Meng, who sometimes goes by the name Sabrina or Cathy, isn’t just the CFO of Huawei. She’s also the daughter of founder Ren Zhengfei, who has close ties to the People’s Liberation Army, the name for China’s armed forces.

Executives in the tech industry are being warned about traveling to China as some experts speculate that the Chinese government could retaliate over the arrest of Huawei’s Meng. The 46-year-old Meng, who sometimes goes by the name Sabrina or Cathy, isn’t just the CFO of Huawei. She’s also the daughter of founder Ren Zhengfei, who has close ties to the People’s Liberation Army, the name for China’s armed forces.

During the first hearing of Huawei Chief Financial Officer Meng, Canadian prosecutors have revealed the charges over which the US is seeking her extradition: She has been accused of conspiracy to defraud banks due to what prosecutors allege was an attempt to cover up transactions involving a Huawei subsidiary that violated US sanctions against Iran.
Appearing in court wearing a green jumpsuit and without handcuffs, Meng reportedly looked to be in good spirits in a Vancouver courtroom where the prosecutions' case was detailed publicly for the first time. Specifically, the US alleges that Meng helped conceal the company's true relationship with a firm called Skycom, a subsidiary closely tied to its parent company as it did business with Iran.
Meng used this deception to lure banks into facilitating transactions that violated US sanctions, exposing them to possible fines. The prosecutor didn't name the banks, but US media on Thursday reported that a federal monitor at HSBC flagged a suspicious transaction involving Huawei to US authorities, according to Bloomberg. Prosecutors also argued that Meng has avoided the US since learning about its probe into possible sanctions violations committed by Huawei, and that she should be held in custody because she's a flight risk whose bail could not be set high enough.

Friday's hearing in Vancouver is just the start of a legal process that could end with Meng being extradited to stand trial in the US. Even if prosecutors believe there is little doubt as to Meng's guilt, the extradition process could take months or even years.

It was Bolton who a week ago intentionally damaged U.S. relations with China.

The U.S. Justice Department arranged for Canada to arrest the chief financial officer of Huawei, Meng Wanzhou, over alleged U.S. sanctions violations with regards to Iran. …

The arrest on December 1 happened while president Trump was negotiating with president Xi of China about trade relations. Trump did not know about the upcoming arrest but Bolton was informed of it …

Mr. Trump was not told about it. … Bolton surely should have informed Trump before his dinner with Xi, in which Bolton took part, but he didn't.

It was a trap. The arrest is a public slap in the face of China and to Xi personally. It will not be left unanswered. Whatever Trump may have agreed upon with Xi is now worthless. John Bolton intentionally sabotaged the talks and the U.S. relations with China. …

Huawei is … the world leader in 5G wireless technology … It is one of the leading inventors in the 5G field and over the last years filed thousands of patents related to it. … Huawei's share in 5G patents has since risen further. Right now it is the only true 5G supplier that can build a complete network. … The company is still depending on computer chips manufactured in Singapore, Taiwan and the United States. But Huawei and other Chinese companies are now investing in their own chip manufacturing technology. They plan to use the 7 nanometer process which only few other companies in the world provide. Huawei is also investing in qantum computing.

The December 1 arrest of Meng Wanzhou and a number of other incidents on that day gave rise to a number of interesting conspiracy theories … via Peter Lee :

April 2017: A director of Chinese tech giant Huawei personally escorted famed Shanghai-born physicist Zhang Shoucheng from the latter’s hotel in Shenzhen. Jackson & Wood Professor of Physics at Stanford University, Zhang was in town to attend an IT summit.

Sept. 2018: Prof. Zhang receives a European physics award, one of his many honors. His work in quantum physics is expected to revolutionize the global semiconductor industry. Yang Zhenning, the first Chinese scientist to receive the Nobel Physics Prize (1957), had predicted that Zhang would be the next one.

Dec. 1, 2018: Prof. Zhang and Meng Wanzhou are expected to attend a dinner in Argentina, where the G20 summit is being held.

Dec. 1, 2018: On her way there, Meng is arrested in transit by the Canadian government.

Dec. 1, 2018: Prof. Zhang falls to his death from a building in the US, allegedly a suicide. Said to be suffering from depression, he was 55.

Dec. 1, 2018: A nighttime fire breaks out at a factory of Holland’s ASML, the world’s leading manufacturer of extreme ultraviolet (EUV) lithography technology. EUV is crucial to the production of the next generation of semi-conductors, which US and Chinese tech firms as well as Korea’s Samsung are competing to be first to bring to market. Leading Chinese semiconductor producer SMIC is known to have ordered EUV technology worth US$120 million from ASML, for scheduled delivery early in 2019. After the fire, ASML announced that it expected delays in shipments of its products, notably early 2019. …

The U.S. spy services and military do not like Huawei. They can no longer easily hack the equipment it sells. Convincing Cisco or some other U.S. company to leave back doors in their equipment is quite simple. One can always threaten the management or board of these companies with some tax investigation or over other shady activities. That is not so easy when the company is hosted in China. …

The National Security Agency breached Huawei servers years ago in an effort to … create back doors so the National Security Agency could roam in networks around the globe wherever Huawei equipment was used. The U.S. is lobbying various countries not to use Huawei equipment. … Germany, meanwhile, said it opposed excluding any manufacturers from the planned construction of 5G mobile networks. …

Staying in full compliance with U.S. sanctions is difficult and Huawei may indeed have not always done so. [so?] Then again - U.S. allegations of sanction violations can always be made up from hot air. They are certainly not the real reason why Meng Wanzhou has come under fire. The White House even admitted such.

Meng Wanzhou was taken hostage to be used as leverage in China trade talks. The 'leverage' could also be used to push Huawei into providing the NSA with back doors to its equipment. This is the policy style of Somali pirates or Saudi clown princes. The ruthlessness of this blackmail operation is breath taking. It is typical of neo-conservative behavior to use such extreme measures. Trump's foreign policy is run by neo-conservatives …

Melania was right when she told an interviewer in Africa that her husband is surrounded by enemies within his administration. These are people who either opposed him during the 2016 campaign season or who signed up early in the campaign with an expectation that they could get jobs in a Trump Administration and in both cases understood that a president not accustomed to thinking seriously about other than business hustle could be manipulated or deceived in pursuit of their own agenda rather than his or that of the "deplorables."

These people are the neocon incubi and succubi who seek an even more dominant hegemonic role in the world for the US. They are out and out imperialists of a kind not seen since the time of McKinley and the US-Filipino War. …

Bolton and Pompeo have Trump's ear and will manipulate him into selecting one of their friends as Kelly's replacement. Secretary of Defense Mattis is the next one to get kicked out. When all of Bolton's selected persons are in place, U.S. foreign policy will become even more radical than it already is.

Taking the CFO of one of China's premier companies hostage to gain control over its technology and as leverage in trade talks is already an extreme measure which will have long term damaging effects on U.S.-China relations. Imagine what else can be done when the little that is left of lawful behavior and decency in U.S. foreign policy gets completely thrown out.

"Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
"War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

Washington’s “revolting” policy of stretching its own criminal laws to other countries' territories has to end, Russia’s Foreign Minister Sergei Lavrov said as Huawei’s top executive faces extradition to the US. Lavrov slammed America’s habit of applying its laws “extraterritorially” and dubbed it “revolting to the vast majority of normal states and normal people.” ...

"Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
"War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

"IMPERIAL PERSECUTION: A STEP TOO FAR
The world's Rogue State has gone one step too far in its intensifying persecution of Huawei. Having virtually banned the Chinese technology standard-bearer from US markets, it has now arrested the company's deputy chairwoman and heir apparent through its Canadian vassals.

Whatever Washington's excuses about violation of its Iran sanctions or threats to its national security, there is just one real reason for the latest US outrage: China is taking an independent path to development. Worse, the Chinese are doing so well that they could overtake the Empire and end its longtime domination of the world.

Smaller, weaker nations that refuse to take dictation from Washington get destabilized, regime-changed, invaded or bombed back to the Stone Age. The current full-spectrum assault on China is what happens to those that are too big to bomb. ..."

"Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
"War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

"The heart of the problem is that the Chinese firm uses a system of encryption that prevents the NSA from intercepting its communications. A number of governments and secret services in the non-Western world have begun to equip themselves exclusively with Huawei materials, and are doing so to protect the confidentiality of their communications."

"Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
"War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

"It is clear the US is pushing the battle line to our door … We can completely regard the US arrest of Meng Wanzhou as a declaration of war against China.” - an editorial in the Global Times of China

The background to the arrest is fairly simple. Huawei has become a global competitor in the global phone market and their 5G phones are cutting edge technology and so not welcomed by competing phone companies … The company has even been threatened by the US and allied governments with criminal charges in America’s increasingly hostile economic war against China alongside its increasing military pressure, provocations and insults. It’s one way to control the market. But now, acting as a mafia they have kidnapped, detained, and hold hostage a Chinese woman whose simple crime is going to work every day. The lack of outcry from women’s rights groups in the west is not surprisingly, deafening.

The pretext for her arrest is that Huawei has violated US sanctions against Iran. But the “sanctions” imposed on Iran by the US recently are illegal under international law, that is under the UN Charter that stipulates that only the Security Council can impose economic sanctions on a nation. The latest American sanctions are not approved by the Security Council. Sanctions imposed unilaterally by one nation against another are not legal and are violation of international law. … There is no legal justification for her arrest by the Canadians who detaining her …

John Bolton … admitted that he knew that this was going to happen several days in advance …

Trudeau’s statement that this arbitrary arrest was not politically motivated and that he was not involved in giving orders for Canadian police to detain her once she landed in Vancouver is preposterous since the Extradition Treaty between Canada and the United States requires that the United States inform the Canadian foreign ministry of its request and send them the documents supporting the request.
Further Article 2 of the Treaty requires that Canada can only act on such a request if, and only if, the offence alleged is also an offence by the laws of both contracting parties. But the unilaterally imposed and illegal sanctions placed against Iran by the USA, are not punishable acts in Canada …

the “sanctions” are illegal as the are in violation of the UN Charter. …

Article 4 (1) of the Extradition Treaty states:

“Extradition shall not be granted in any of the following circumstances:
(iii) When the offense in respect of which extradition is requested is of a political character, or the person whose extradition is requested proves that the extradition request has been made for the purpose of trying to punish him (or her) for an offense of the above-mentioned character. If any question arises as to whether a case comes within the provisions of this subparagraph, the authorities of the Government on which the requisition is made shall decide.” …

Trudeau cannot evade responsibility for this hostage taking, this arbitrary arrest and detention since his government had to consider the US request and consider whether it was politically motivated. … the matter had to be considered at the highest level, by him. …

the offence alleged is not an offence in Canada, and cannot exist under international law … the US request is clearly politically motivated and has the objective of damaging both Iran and China … It was a political arrest. The rule of law in Canada has been suspended, at least in her case, and so can be in any case. …

"Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
"War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

Canada's extraordinary arrest one week ago of Huawei CFO Meng Wanzhou, the daughter of Huawei founder and billionaire executive Ren Zhengfei, and its decision to charge her with "multiple" counts of fraud - a preamble to her likely extradition to the US to face charges of knowingly violating US and EU sanctions on Iran - has elicited widespread anger in Beijing, which declared Meng's detention a "violation of human rights" during a bail hearing for the jailed executive on Friday.That anger has apparently only intensified after the hearing adjourned without a decision (it will resume on Monday, allowing Meng's defense team to argue for why she should be released on bail, contrary to the wishes of government attorneys who are prosecuting the case).
And with Canada insisting that it will prosecute Meng to the full extent of the law over allegations that she mislead banks about the true relationship of a Huawei subsidiary called Skycom, angry Chinese officials have decided to issue an ultimatum directly to the Canadian ambassador, who was summoned to a meeting in Beijing on Saturday and told in no uncertain terms that Canada will face "severe consequences" if Meng isn't released, according to the Wall Street Journal.
China's foreign ministry publicized the warning in a statement (though Canadian officials have yet to comment):

Chinese Vice Foreign Minister Le Yucheng summoned Canada’s ambassador to Beijing, John McCallum, on Saturday to deliver the warning, according to a statement from the Chinese Foreign Ministry.
The statement doesn’t mention the name of Huawei’s chief financial officer, Meng Wanzhou, though it refers to a Huawei "principal" taken into custody at U.S. request while changing planes in Vancouver, as was Ms. Meng. The statement accuses Canada of "severely violating the legal, legitimate rights of a Chinese citizen" and demands the person’s release."Otherwise there will be severe consequences, and Canada must bear the full responsibility," said the statement, which was posted online late Saturday.
Phone calls to the Canadian Embassy rang unanswered while the Canadian government’s global affairs media office didn’t immediately respond to an email request for comment.

The warning marks an escalation in Beijing's rhetoric as investors worry that the arrest could cause the shaky trade detente between the US and China to devolve into acrimony. A federal judge issued a warrant for Meng's arrest back in August. Though after she was made aware of the warrant, Meng avoided travel to the US. She was arrested in Vancouver last Saturday while traveling to Mexico.

Meng’s arrest, based on allegations that she committed fraud to sidestep sanctions against Iran with the help of the one bank which over the past decade was directly and indirectly implicated in virtually every instance of money laundering, HSBC, has become a flash-point in trade tensions between the U.S. and China, roiling markets and judging by the latest news, when futures reopen for trading in a few hours we may see another flash crash, because moments ago China’s Vice Foreign Minister doubled down when Le Yucheng also summoned the U.S. Ambassador to China, Terry Branstad, in a protest over the arrest of the Huawei Chief Financial Officer.

China's Ministry of Foreign Affairs summons U.S. Ambassador to China Terry Branstad to protest the arrest of #Huawei CFO Meng Wanzhou by Canadian authorities, which took place at the request of the United States pic.twitter.com/cfoaZXz4Cb
— CGTN (@CGTNOfficial) December 9, 2018

The minister said U.S. actions have violated the “legitimate rights and interests of Chinese citizens and are extremely bad in nature,” according to a posting on the ministry website. “China will take further action based on the U.S. actions.”
Curiously, attempts to access the Chinese foreign ministry website from abroad have proven unsuccessful.
Like with Canada, the ministry urged the US to withdraw the Huawei CFO arrest warrant, crushing any speculation that Beijing was allowing the US to arrest her as a sign of "goodwill" in ongoing negotiations.

President Donald Trump had not been informed about the arrest of Chinese telecom giant Huawei's chief financial officer when he dined with China's Xi Jinping, a top White House official said Sunday.
"He did not know and he had no reaction afterwards," White House economic adviser Larry Kudlow said on "Fox News Sunday," denying reports Trump was "livid" that the arrest took place while he was at dinner with Xi.
"He didn't know. I will just state that unequivocally," Kudlow repeated. "He learned way later, by the way. Way later."

US National Security Advisor John Bolton initially told public radio network NPR that the White House had been warned about the arrest but, according to CBS, a spokesman for him later contradicted that assertion.

U.S. prosecutors want a top executive of China’s Huawei Technologies, the world’s largest supplier of telecommunications network equipment, to face charges of fraud linked to the skirting of Iran sanctions, a Vancouver court heard on Friday.
Huawei Chief Financial Officer Meng Wanzhou, 46, daughter of the founder of the company, which U.S. intelligence agencies allege is linked to China’s government, was arrested in Canada on Dec. 1 at the request of the United States.
U.S. prosecutors want to extradite Meng to face accusations that she misrepresented Huawei’s relationship to a company they said had transacted business in Iran despite U.S. sanctions, according to evidence read in a bail hearing in court on Friday.

Understand that Bill Clinton faced a significant Chinese scandal of selling technology to them and covering it up under the Monica Lewinski scandal, but don’t think the Clintons ties to the Chinese went away back in the 1990s.
Those ties continued on into her tenure as Secretary of State under the usurper Barack Hussein Obama Soetoro Sobarkah. At that time, she secured her brother’s financial interests in Hong Kong, which included executives from Huawei, who received visas. The visas were used to spy on the US.Real Clear Politics reported in April 2015:

In describing the “latest imbroglio involving Hillary Clinton’s brother Tony Rodham,” Purdum notes Tony’s efforts to get a visa approved for a foreign investor in Clinton friend and Virginia Gov. Terry McAuliffe’s company while his sister was secretary of state. But he fails to mention that it was Bill Clinton himself who got the Chinese investor together with Rodham and McAuliffe at the Clinton Global Initiative in Hong Kong in 2008, just days after Hillary’s nomination as secretary.
Nor does the article by Purdue tell the full story about the cash-for-visa scandal involving Tony Rodham. At least one of the visa applications was for a vice president of Huawei Technologies, a Chinese telecom company that has been accused of spying on American industries, pirating American technologies and providing crucial equipment to our enemies. Huawei has been trying for years to do business in the U.S., but we won’t let it in because of its history of cyber spying and reported closeness to the Chinese military. But Tony was all too happy to help Huawei.

The emails obtained by Grassley’s office, which were shared with NBC News, show that, after winning approval to participate in the foreign visa program, at least one of the visas sought by Rodham’s firm was for a vice president of Huawei Technologies, a Chinese telecommunications firm that has been investigated by the House Intelligence Committee over claims that it is closely tied to the Chinese intelligence services. Huawei Technologies has denied such charges.

Johnny Chung
In 1996, then Senator John Kerry was in a tough re-election fight against Republican Governor Bill Weld. In July, Kerry met with businessman Johnny Chung and his Chinese partner Liu Chaoying. Johnny was born in Taiwan and later became an American citizen.

Between 1994 and 1996, Chung donated $366,000 to the DNC. Eventually, all of the money was returned. Chung told federal investigators that $35,000 of the money he donated came from Liu Chaoying and, in turn, China’s military intelligence.

In 2007, US diplomats reported that Liu Chaoying was “involved in arms sales to foreign countries through Huawei and other military or quasi-military companies on whose boards she sat”. Her elder brother, Liu Zhuoming, is an influential navy admiral and member of the National People’s Congress.
In September last year, Chinese president Xi Jinping paid a lengthy personal tribute to Liu Chaoying’s late father on the occasion of the centenary of his birth, declaring Liu Huaquing to be one of the greatest leaders of the modern Chinese military.

So, when we break this all down, what do we see here? We have the CFO of a company that was tied directly to the Chinese election funding fiasco of the 1990s and also a company that received visas from the Secretary of State whose brother was tied to that company financially. Both Meng Wanzhou and her father are tied to the Clinton criminal cartel, and it seems there was more than likely a pay-to-play scheme going on with Huawei.

We previously wrote about China going after its own business executives and the arrest of Huawei CFO breaking “the truce” with the U.S. Right on cue, it did not take long for the Chinese to respond to the arrest of the CFO in Canada. Today a Chinese court granted Qualcomm injunction against Apple (AAPL US), banning sale of Iphones. CNBC writes;The court has banned the import and sale of nearly all iPhone models in China, according to a statement Monday from Qualcomm. Apple is already disputing the scope of the ban, saying it only applies to iPhones that run on an older operating systemThe Fuzhou Intermediate People’s Court in China granted the two preliminary injunctions against four Apple subsidiaries in China. It relates to two Qualcomm patents that enable users to adjust and reformat the size and appearance of photos and to manage applications using a touch screen when viewing and navigating apps on their phones. iPhones are currently sold with the operating system iOS 12This is probably one of the first shots the Chinese are taking against U.S. and Apple. One can argue that Qualcomm is also a U.S. company, but in this instance it is all about appearance. Markets and potentially President Trump cares more about the prized U.S. company Apple than about some supplier like Qualcomm.Also, Apple supply chain is more than any other U.S. tech company exposed to China. Making hedging and taking out production out of China more difficult. Ben Thompson from Stratechery makes an excellent point; Taiwanese manufacturers may own the factories in China, but Apple very much controls every part of those factories. That’s the thing, though: there is always a tradeoff. Because Apple demands so much control, hedging will for them be more difficult than nearly any other company.This was the opening salvo from the Chinese side. If it continues, China could go after Apple’s supply-chain.

China’s Vice Premier Liu He, U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer spoke by phone Tuesday morning Beijing time, signaling that dialog continues on trade issues despite a diplomatic row over the arrest of a senior Chinese businesswoman.The two sides exchanged views on the timetable and road map of future trade talks, according to a statement from China’s Ministry of Commerce. Liu leads China’s trade negotiations with the U.S.
Key Insights
The occurrence of the call may indicate that Washington and Beijing are seeking to implement their agreement from earlier this month to ease trade tensions, even after the arrest of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou

In making their case that Huawei CFO Meng Wanzhou who was arrested on fraud charges in Vancouver should be denied bail, the U.S. prosecution said that she has access to “numerous passports and visa documents,” allowing her to flee with more ease.
According to the U.S. Justice Department and the United States Attorney’s Office in the Eastern District of New York, Meng has used seven passports from China and Hong Kong in the last 11 years to enter the United States. The passports include four issued by China, and three issued by Hong Kong.
Both Chinese and Hong Kong passports have a typical validity period of 10 years. Legally, a mainland Chinese citizen cannot hold both a Chinese and Hong Kong passport at the same time.

[I]“t is entirely possible that Meng has additional passports of which the United States government is not aware,” U.S. prosecutor Richard Donoghue wrote in a statement.

According to the Hong Kong-based publication Mingpao, Meng has at least one more Chinese passport that wasn’t listed in the U.S. prosecutors’ list. The publication says that a search into Hong Kong business registry shows records of a Chinese passport belonging to Meng that has a number starting with the letter P, while the Chinese passport numbers listed by U.S. prosecutors all start with the letter G.

For officials and the business elite in China, having access to multiple travel documents has increasingly come to be seen as a necessity in recent years as a means to be able to quickly evade trouble with authorities.The surge by Chinese and Russian wealthy using “cash for citizenship programs” offered by some EU member states has even caused European officials to promise to crack down on the practice.
An internal report by China’s Central Discipline Inspection Commission leaked in 2012 said that over half of the members of China’s rubber-stamp legislature hold foreign passports, even though Chinese law forbids dual citizenship.
During the 2013 investigation of Liu Tienan, director of the China’s National Energy Administration between 2011 and 2013, who was convicted on charges of bribery of 240 million yuan ($34.91 million) and sentenced to life in prison later, Hong Kong media reported that he held 12 passports from foreign countries including Canada and Australia.
Zhu Mingguo, the disgraced former chairman of the Guangdong Provincial Political Consultative Conference who was investigated for bribery in 2014, reportedly held 14 Chinese passports under different names. A peculiar revelation during his investigations was that while the photos of the passports were all of Zhu, the gender marked in the passports were female. Zhu was sentenced to death with reprieve for taking bribes worth of tens of millions of dollars.
In another similar case in the same year, Ling Jihua, the chief of the General Office of the Communist Party of China between 2007 and 2012, was reportedly found to hold six passports under different names.
In another case, Xi Xiaoming, vice president of the Supreme Court of the Chinese Communist Party, was found in 2015 to hold six passports, and three travel documents from Hong Kong and Macau.
In the case of another official investigated in the same year, Zhou Benshun, who was the secretary of the Chinese Communist Party Hebei Provincial Committee, it was revealed that he held 12 passports.

Lawyers for indicted Huawei CFO Meng Wanzhou put a new spin on an old Rodney Dangerfield joke on Tuesday when they offered to pledge both of Meng's multimillion dollar homesas well as her husband (and her children) as collateral should the executive be granted bail.
Yes, you read that right:

HUAWEI CFO'S LAWYER PLEDGES HUSBAND PLUS 4 OTHERS AS SURETIES

Meng's lawyer also agreed that their client would wear an ankle bracelet while free on bail.

MENG'S LAWYER ALSO AGREES TO ELECTRONIC SURVEILLANCE FOR BAIL

CANADA JUDGE AKS HOW `HYPOTHETICAL' BAIL RELEASE TO BE FRAMED

Canadian prosecutors argue that Meng is an obvious flight risk and should be held until she is extradited to the US (a process that could take years) or tried in Canada. Meng has no deep ties to Canada and also has at her disposal immense resources (including numerous passports and her father's $2 billion fortune) to evade justice in perpetuity should she return to China, which doesn't have an extradition treaty with the US or Canada. Meng's lawyers, meanwhile, cited her family's residences in Vancouver as well as their clients ill health following a bout with thyroid cancer as reasons why she should be released.

After three days and a lengthy recap of both the government's case for holding Meng Wanzhou and her defense attorney's case for offering her a surety bond, British Columbia Supreme Court Justice Ehrcke has ruled that he is satisfied with the terms Meng’s lawyer is proposing for her bail. The Huawei CFO will be released from custody and live at her Vancouver home under round-the-clock in-person surveillance, and she will also wear an electronic ankle monitor while she awaits extradition hearings. Meng must also surrender her passport. Meng must also cover all the costs of her surveillance, carry paperwork detailing the terms of her bail at all times, and submit to checks from the RCMP. She will also be subject to a curfew.
The financial terms of her bail were steep: They required at least five people to post $3 million in collateral and a $7 million cash deposit. Meng's next court date has been set for Feb. 6.

All of those who came forward are residents of British Columbia who came forward in court and affirmed that they would be comfortable contributing to Meng's bond, according to Global News. One of the individuals was a realtor who worked with the Meng family, another is a homemaker and family friend.

A Vancouver realtor who helped Meng’s family purchase their Vancouver homes said he will pledge his $1.8-million property and act as surety, the court heard. An insurance agent who has been a Canadian citizen since 1999 and once worked with Meng at Huawei also offered to act as surety. He said he has known Meng since the mid-1990s and is pledging $500,000 of equity from his $1.4-million home.
The third surety is a homemaker. Her husband used to work at Huawei and knew Meng well, the court heard. She pledged $850,000 of equity from her home on Vancouver’s west side.
Another surety is one of Meng’s Vancouver neighbours who says she is close to the family, particularly with the parents of Meng’s husband. She pledged $50,000 in cash.
During a review of the opposing cases for whether Meng should receive bail, Justice Ehrcke noted that Meng was arrested on a provisional warrant and that the US must complete documentation to lodge an official extradition request.

Meng's attorney has already selected a private security company that he asked be given the authority to apprehend Meng should she violate the terms of her bail. The company is called Lions Gate Risk Management. While on bail, Meng said she would like to remain in Vancouver to try and obtain her PhD at a local university.

On Monday, Meng’s lawyer David Martin suggested if she is granted bail, a private security firm — Lions Gate Risk Management — be given the authority to apprehend Meng if she breaches bail.Lions Gate executive director Scot Filer said in the event bail was granted, Meng could be supervised by his company. His plan would include a dedicated driver and security team; an encrypted system for texting, videos, and GPS; a home security package; and a weekly itinerary provided by Meng.

Lawyers for the Canadian government have expressed concerns that hackers could tamper with Meng's electronic surveillance - hence the in-person guards.

Crown attorney John Gibb-Carsley said Monday the family did own two Vancouver properties, but Meng only visited the area two or three weeks every year.
Gibb-Carsley noted the risk of hackers impacting Meng’s electronic surveillance, raising the possibility, however remote, that the CFO of a global communications company has "the ability to compromise the system."He also noted that Lions Gate has done security monitoring, but never monitored someone on bail. He called the risk associated with the case "an inch wide but a mile deep."

The CFO's supporters reportedly applauded after the decision was handed down. Meng reportedly turned around in court and smiled at her husband, and gave a brief wave to her supporters.

Huawei has released a terse statement addressing Meng's release:
And while so much of the focus on this case has focused on Meng's bail terms, @fxmacro makes a good point...the case is moving forward...that's what really matters here.

Jeff Mason, Reuters White House correspondent, reports that Trump would consider intervening in case of Huawei CFO if it would serve national security and help with a China trade deal...

“If I think it’s good for what will be certainly the largest trade deal ever made – which is a very important thing – what’s good for national security – I would certainly intervene if I thought it was necessary,” Trump said.

Trump also said the White House has spoken with the Justice Department about the case, as well as Chinese officials.

“They have not called me yet. They are talking to my people. But they have not called me yet,” he said when asked if he has spoken to Chinese President Xi Jinping about the case.

And then said that China is buying tremendous amounts of soybeans and that he will meet again with President Xi on trade if necessary.